gold receded this Tuesday June 20 and deepened its downward trend that accumulates three consecutive daysafter the solid US home construction data and the dollar strengthwhile Traders await testimony from Federal Reserve Chairman Jerome Powellat the Capitol for know the trajectory of interest rates.
spot gold fell 0.71% to $1,936.12 per ounce after falling as much as 1%, its biggest daily drop in nearly two weeks. The gold futures US they gave up 1.2%to $1,947.50.
Construction of single-family homes in the United States skyrocketed in May still maximum in more than a year and permits for future buildings also went up, which suggests the housing market may be turning around after being hit by the Fed rate hikes.
Besides, the dollar index rose 0.2%which detracts from bullion for buyers with other currencies.
Meanwhile, the market awaits Powell’s remarks to Congress next Wednesday and Thursday.
The Commerzbank analysts they reduced their gold price estimate for the second half of 2023 in u$s50 au$s2.000 per ounce, and see another rate hike by the Fed in July and no rate cut until the second quarter of next year.
Traders see a 74% chance of a 25 basis point rate hike in Julyand no rate cuts are expected until the start of 2024, according to the CME’s Fedwatch tool.
Among other precious metals, the silver Spot was down 3.3% at $23.14 an ounce, its lowest level in three weeks. He platinum was down 1.5% at $961.37 after earlier hitting its lowest since March 29, while the palladium It was down 2% at $1,378.80.
Source: Ambito
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